DELIVERING CLEAN COLD AND POWER

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1 DELIVERING CLEAN COLD AND POWER

2 DEARMAN Dearman Dearman is a British company pioneering the development of clean liquid air technology to achieve major improvements in resource efficiency, greenhouse gas emissions and air pollution of power and cooling. At the heart of our technology portfolio is the Dearman engine, a novel piston engine powered by liquid air/nitrogen that generates both cold and power from a single tank of fuel. In partnership with academics, industry leaders and experts in energy and cryogenics, we are developing applications of the Dearman engine which are efficient, low carbon, zero-emission, quiet and cost-effective.

3 THE CHALLENGE The Challenge There is an urgent need to discover cost effective and sustainable solutions to the problems of resource scarcity, poor air quality and climate change: Globally vast quantities of energy, land and water are wasted producing food that is never eaten because of the lack of a sustainable cold chain; The World Bank estimates that air pollution costs the global economy more than $5 trillion annually in welfare costs. In the transport sector this creates a requirement for expensive development of diesel engine technology and a drive for more cost effective and cleaner alternatives; The IEA expects the demand for cooling to outstrip the demand for heat by 2060, so more flexible, efficient and environmentally friendly ways of meeting this need are essential. Dearman is developing technologies and products to address these challenges as we believe them to be some of the most significant facing society. IEA forecast energy demand for space heating and space cooling; World energy demand, exajoules Heating Air conditioning

4 THE COMPANY The Company Our team brings together technical and manufacturing expertise from the automotive and aerospace sectors that we combine with strategic commercial experience. With significant private and government support to date, we have built the world s first dedicated Clean Cold Technology Centre based close to Gatwick Airport in South London, housing our team of 70 engineers and product development staff. Since 2011 we have rapidly developed our core engine technology from an initial concept into its first commercial application a zero-emission transport refrigeration system that is now in operation in the UK with Sainsbury s (one of the UK s largest retailers). Subsequent applications are being developed at an accelerated pace, again with financial support from the UK Government and the company s investors. We leverage these resources and our background intellectual property with our partners and customers to develop new products and services.

5 AWARDS AND RECOGNITION Awards and Recognition Dearman has gained an international reputation for innovation, engineering excellence and pioneering the concepts of clean cold and the cold economy. The European Commission listed the Dearman Engine in its first Heating and Cooling Strategy (published in 2016), highlighting its potential to act as a significant enabling technology while delivering low carbon growth. The UK Government nominated Dearman for two awards in the annual Innovate UK - Innovation Awards presented in the Houses of Parliament, and the company was honoured to win both the Innovation leading to Investment and the prestigious Inspiring Innovation awards. Dearman has also been awarded numerous respected industry awards for innovation, technology development and sustainability. Toby Peters, Dearman Founder accepting awards for Innovation Leading to Investment and Inspirational Innovation at the annual Innovate UK SME Innovation Awards. Awarded by Jo Johnson MP, Minister of State for Universities, Science, Research and Innovation.

6 OUR PARTNERS Dearman s zero-emission system is really exciting, to be running a liquid air engine quite literally means our cooling is running on thin air! Paul Crewe, Head of Sustainability for Sainsbury s

7 OUR PARTNERS Our Partners Dearman takes a collaborative approach to product development and works with partners wherever possible. We have built relationships with major industrial partners including Air Products, a global industrial gas producer, and Hubbard Products, the refrigeration equipment OEM now part of the 60,000-employee strong global Daikin group. We have also created a network of links with British and overseas universities, including the University of Birmingham, Leeds University, Imperial College, Loughborough University, Heriot Watt University as well as Universities in Malaysia, Singapore and India.

8 LIQUID AIR Liquid air - a novel energy vector storing cold and power When people talk about energy storage they usually mean electro-chemical batteries. But when the service required is cooling, and especially when ambient temperatures are high, it is often more effective to store energy as cold. Liquid air is a powerful new energy vector to provide distributed clean cold and power in vehicles and buildings. Liquid air is not yet produced commercially, but liquid nitrogen, which can be used in the same way, is produced throughout the industrialised economies. Historically nitrogen has been used simply as an industrial gas, but now it is being re-purposed as a means of converting renewable and off-peak energy into storable, transportable cold and power. Liquid air or nitrogen can be kept safely in insulated but unpressurised tanks, and when exposed to heat will instantly re-gasify and expand 700-fold in volume. When channelled through a Dearman engine, this process generates both cooling and mechanical power for a wide range of applications. Because liquid air is simply air that has been cooled to -196 C, it also provides a convenient and effective way to capture and recycle the huge amounts of cold energy that are typically wasted during the re-gasification of LNG at import terminals. Harnessing Liquid Air Liquid air is about storing cold and power 710 litres of air litres of air & lots of cold Wrongtime Energy EXPANSION Power Out LIQUIFICATION 1 litre of liquid air stored at atmospheric pressure Cold Out CHARGING STORAGE DISCHARGING

9 THE DEARMAN ENGINE Dearman engine - the enabling technology Dearman is developing liquid air technologies in partnership with academics, industry leaders and experts in energy and cryogenics. At the heart of its technology portfolio is the Dearman engine, a novel piston engine powered by liquid nitrogen - that generates both cold and power from a single tank of fuel. It is efficient, low carbon, zero-emission, quiet and cost-effective, and reconciles the conflicting economic and environmental challenges posed by resource scarcity, poor air quality and climate change. The first application of the Dearman engine is a transport refrigeration unit (TRU). It is the first to meet all environmental challenges - and set new industry performance standards - all without having to compromise on cost. Powered by the revolutionary Dearman engine, and fuelled by liquid nitrogen (LiN), the system is low carbon, zero-emission, quiet, efficient and costeffective. What s more, it outperforms conventional diesel units in cooling power, speed and accuracy. Further applications of the Dearman engine being developed include dynamic high yield waste heat recovery systems, auxiliary power units (APUs) for cooling and power, zero-emission powertrains as well as energy storage and food processing. The Dearman engine offers comparable power density and refuelling time to an industrial diesel engine but with none of the associated emissions or noise; unlike battery powered applications, it refuels in minutes rather than hours; its fuel supply chain is already established; and since it is based on piston engine technology, manufacturing can be scaled up quickly. Dearman technology has a number of benefits, even compared to other low carbon technologies: Provides simultaneous power and cooling Low capital cost & low embedded carbon Fast refuelling liquid air can be refuelled in minutes not hours Existing infrastructure the industrial gas industry is established and global Mature fuel manufacturing process liquefaction of air is an established process

10 DEARMAN ENGINE MARKETS Dearman Engine Markets Various applications of the Dearman Engine are in development: Transport Refrigeration Unit The first application of the Dearman Engine is a highperformance transport refrigeration unit (TRU) which is: Zero emission Quiet And Cost Effective This product is currently with some of Europe s leading retailers, including Sainsbury s in the UK. The TRU provides cooling for a truck s cargo as well as power for the system s fans and lights, so that the refrigerator works fully independently of the vehicle s main engine. Food Processing Variants of Dearman s TRU technology can be used for rapid food chilling and freezing anywhere that a portable refrigeration system is required. This can help small farmers in developing countries access remote markets and large producers achieve efficiency improvements by reducing handling steps. Energy Storage The Dearman Engine can be used as a zero-emission alternative to diesel gen-sets in emission constrained areas. The system provides a combination of electrical power and cooling to reduce energy consumption during peak times enabling customers to reduce costs and environmental impacts.

11 DEARMAN ENGINE MARKETS Commercial and Off-highway Vehicles Dearman Engines offer multiple opportunities to improve the fuel economy and operation of commercial and off-highway vehicles. Projects under development include: Dynamic High Yield Waste Heat Recovery Systems Diesel engines typically lose a third of the energy contained in their fuel as low grade waste heat through the radiator. Because it is powered by the expansion of a cryogenic liquid, the Dearman engine converts low grade waste heat into additional work at high efficiency. The two engines can be combined as a heat hybrid, in which the Dearman engine helps cool the diesel, and waste heat from the diesel engine increases the work done by the Dearman engine. The two engines can be operated individually and together to deliver various levels of power output. A first prototype variant of the heat hybrid is now in on-vehicle trials with HORIBA MIRA in the UK. Opportunities also exist to recover waste heat from other sources on board the vehicle. Auxiliary Power Units (APUs) for Cooling and Power In high ambient temperature countries, cooling is as important for people as for goods. The Dearman engine is being developed as an auxiliary cold and power unit (APU) to provide air conditioning in buses. This is particularly important in tropical climates, where air conditioning can raise a bus fuel consumption by almost half, and severely reduce the range of electric an electric bus. Providing air conditioning through a Dearman APU could avoid a substantial increase in diesel emissions or enable a city or country to switch to electric buses. Zero Emission Powertrains A Dearman engine could offer significant advantages for indoor or underground applications such as mining, where its exhaust of clean cold air could substantially reduce ventilation requirements and the associated costs. Certain smaller classes of on-highway vehicles would also benefit from a powertrain that can offer combined cooling and power. High-level desk-based techno-economic analysis indicates an attractive business case for zero-emission powertrains in the markets mentioned. focused on-vehicle applications of the Dearman Engine. We are now seeking input from the OEM and Tier 1 communities about where within the application space we should best focus resources to meet medium and long term industry requirements. Other opportunities exist to integrate the Dearman Engine with conventional and alternative power systems via thermal, working fluid and mechanical means exploiting its unique combination of power and cooling for fuel economy and emissions savings. Dearman and its supply chain partners have recently received funding from the UK s Advanced Propulsion Centre to pursue a 15m programme of technical and industrial development

12 Dearman is investing heavily in the development of unique future technologies and applications that will meet society s needs in the transition to a low-carbon economy. Dearman s technology and product development process is driven by the needs of customers and society. It works with both to identify and overcome environmental, economic and social challenges, ultimately by providing access to cleaner and more affordable cold and power. As the world faces global challenges of food scarcity, climate change, increasing middle class consumption and growing energy demand, how we deliver clean and sustainable cold and power is a major issue. Dearman, with its unique clean cold and power technology, and world class engineering know-how, is well placed to contribute, helping to make the world a cleaner and cooler place. Dearman, Unit 5 Stafford Cross Business Park, Stafford Road, Croydon, Greater London, CR0 4TU